What does the downward sloping of PPC indicate?

Answer 1

The downward sloping of the Production Possibility Curve (PPC) indicates the trade-offs between two goods or services in an economy, illustrating the concept of opportunity cost. As resources are allocated to produce more of one good, the production of another good decreases, reflecting that not all resources are equally efficient in producing both goods. This slope shows that to increase the output of one good, a certain amount of the other good must be sacrificed. Thus, the PPC visually represents the limits of production given fixed resources and technology.